Correlation Between Weyco and JOHNSON
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weyco Group and JOHNSON JOHNSON 695, you can compare the effects of market volatilities on Weyco and JOHNSON and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Weyco with a short position of JOHNSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and JOHNSON.
Diversification Opportunities for Weyco and JOHNSON
Average diversification
The 3 months correlation between Weyco and JOHNSON is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and JOHNSON JOHNSON 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON JOHNSON 695 and Weyco is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Weyco Group are associated (or correlated) with JOHNSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON JOHNSON 695 has no effect on the direction of Weyco i.e., Weyco and JOHNSON go up and down completely randomly.
Pair Corralation between Weyco and JOHNSON
Given the investment horizon of 90 days Weyco Group is expected to generate 10.26 times more return on investment than JOHNSON. However, Weyco is 10.26 times more volatile than JOHNSON JOHNSON 695. It trades about 0.08 of its potential returns per unit of risk. JOHNSON JOHNSON 695 is currently generating about 0.18 per unit of risk. If you would invest 3,353 in Weyco Group on September 2, 2024 and sell it today you would earn a total of 218.00 from holding Weyco Group or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Weyco Group vs. JOHNSON JOHNSON 695
Performance |
| Timeline |
| Weyco Group |
| JOHNSON JOHNSON 695 |
Weyco and JOHNSON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and JOHNSON
The main advantage of trading using opposite Weyco and JOHNSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, JOHNSON can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JOHNSON will offset losses from the drop in JOHNSON's long position.The idea behind Weyco Group and JOHNSON JOHNSON 695 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JOHNSON vs. Amkor Technology | JOHNSON vs. CECO Environmental Corp | JOHNSON vs. Uber Technologies | JOHNSON vs. ServiceNow |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |